EyeOn hosted Retail Expert Session on Forecasting & Planning on October 24th
Retail today is all about getting closer to the customer and act better, faster, and leaner than competition. EyeOn’s first event for the retail industry tried to answer the question whether retail’s current forecasting, replenishment and planning processes fit these goals.
On October 24th major FMCG, Food, Electronics and DIY retailers shared their planning challenges and best practices. On shelf availability, flawless replenishment & forecasting, business planning integration, promotional effectiveness and cash improvement are dominating the agenda today. In the age of the customer out of home deliveries, customer loyalty programs and use of apps are getting more important to bind the end consumer and fulfill his / hers new needs.
Planning in the retail industry is still focused on the short term horizon and process optimization within the internal organization. Looking at the total retail value chain, the industry is aware that optimized planning goes all the way back to manufacturing and an integrated planning approach and supply chain collaboration are recognized as the way forward.
The willingness to make processes and information more transparent with suppliers & manufacturers is there today, as well as the openness to explore ways of doing things differently. Nevertheless structural planning collaboration and data sharing is only brought into practice for some key suppliers and/or part of the business. Common goalsetting between retailers and manufacturers is seen as enabler to face the increasing complexity of the retail business today.
To close the day, EyeOn presented a case study on forecast collaboration between a retailer and food manufacturers. By using event casting and statistical forecasting starting from POS data, EyeOn has built both a model and a way of working to forecast promotions. The model takes in account a set of parameters to predict the promotion (including preloading effects, after-promotion dips and the cannibalization impact of a promotion on other products). Clear improvements in promotional effectiveness lead directly to a better stock performance and improved On shelf Availability.
For more info on the retail network, supply chain collaboration and forecasting & planning for retailers, please contact André Vriens (tel. +31 620 243 823 or firstname.lastname@example.org) or Luc van Wouwe ( tel.+32 478 87 21 89 or email@example.com).